Post Office launch competitive savings bonds

Published by Rob Goodman on 07 April 2014. Last updated on 07 April 2014

The Post Office has announced two new competitive bond deals for savvy savers.

It's Growth Bond (Issue 22) and Online Bond (Issue 11) will offer a rate of up to 2% AER and 2.01% AER respectively for those willing to tie their money up for three years.

Both products give you the option to invest over a shorter amount of time, with the Growth Bond offering 1.60% AER for one year and 1.85% AER for two years. The online deal will give you a slightly better 1.61% AER for one year and 1.86% AER for two.

The minimum deposit for either bond is £500.

However, if you are looking to put away some more cash, then the ICIC Bank HiSAVE three-year fixed-rate account pays a rate of 2.70% on balances more than £1,000, while the Shawbrook Bank three-year fixed-rate bond (issue 16) will give you 2.65% on balances over £5,000.

Over 12 months, the Britannia fixed-rate bond is offering 1.71% AER on deposits over £1,000, while Metro Bank will give savers 1.71% AER on anything over £500.

Henk Van Hulle, head of savings and investments, said: "As one of the UK's leading savings providers we remain committed to giving our customers the best rates possible, especially in such a tough savings environment.

"With a minimum deposit of £500 as well as very attractive interest rates these products are designed to cater for the varying needs of today's savers."